The U.S. Department of Justice (DOJ) has announced that stablecoin issuer Tether has played a crucial role in helping authorities recover funds stolen in a prevalent crypto investment scam. According to the DOJ, nearly $5 million worth of the stablecoin USDT has been seized, which were traced to wallets allegedly used to launder the proceeds of a pig butchering scheme.
The scam involved bad actors who would spark romantic relationships with their targets to gain their trust and convince them to invest in fraudulent crypto schemes. The scammers would then move the proceeds through multiple wallets in an attempt to conceal the nature, source, and ownership of the funds.
However, thanks to the efforts of FBI agents and analysts, the funds were successfully traced back to the perpetrators. U.S. Attorney Michael Easley emphasized the importance of recovering funds lost to investment frauds, stating, “We are determined to seize their illegal proceeds and return money to the victims.”
Tether played a key role in assisting the FBI by freezing multiple wallets involved in the scam. The firm’s CEO, Paolo Ardoino, condemned the misuse of USDT for criminal activities and reaffirmed their commitment to collaborating with law enforcement to combat fraud.
The DOJ expressed gratitude to Tether for their assistance in seizing millions of dollars worth of USDT, highlighting the importance of cooperation between the crypto industry and law enforcement agencies in combating financial crimes.
Investors are reminded to exercise caution and conduct thorough due diligence before making high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not provide investment advice and recommends that individuals trade at their own risk.
